According to a recent report by Grand View Research, Inc., the global smart lighting market is projected to reach a substantial size of USD 72.35 billion by 2030, registering a compound annual growth rate (CAGR) of 22.1% from 2023 to 2030. This rapid market expansion is largely driven by several key factors, including the ongoing development of smart cities, the increasing adoption of smart homes, the deployment of intelligent street lighting systems, and a growing emphasis on energy-efficient lighting solutions across various sectors.
While smart lighting systems generally come with a higher upfront cost compared to traditional lighting options, their numerous benefits tend to justify and outweigh the initial installation expenses over time. However, the relatively high price point of smart lighting products has posed some limitations to market growth, especially during the COVID-19 pandemic when the purchasing power of the middle-class income group declined, affecting their ability to invest in such advanced lighting solutions.
A significant driver of market growth is the rising trend of home automation, which is increasingly gaining traction among middle- and high-income households. This trend is further accelerated by the continuous evolution of Internet of Things (IoT) technologies specifically designed for smart homes. For instance, smart lights can be seamlessly integrated with other electronic devices, enabling users to control various functions conveniently. Moreover, popular voice-activated personal assistants like Alexa, Crotona, and Siri can be synced with smart lighting applications, allowing homeowners to manage lighting settings such as hue, brightness, and on/off schedules through simple voice commands.
This transformation is not limited to residential environments; commercial spaces are also experiencing a shift towards smart lighting technologies. The retail sector, in particular, has emerged as one of the primary beneficiaries of smart lighting systems. Beyond offering improved energy efficiency, these systems utilize advanced communication technologies such as Bluetooth Low Energy (BLE) and Visible Light Communication (VLC). These technologies enable LED light fixtures to wirelessly communicate with smartphones’ antennas and cameras, allowing retailers to interact with customers within the store premises. This interaction can include sending personalized offers and real-time information about product availability, tailored to the customer’s purchasing behavior. Such value-added integrated functions are anticipated to further accelerate the adoption and growth of smart lighting technologies in the coming years.
Furthermore, the residential, commercial, and industrial sectors are progressively incorporating advanced technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) to enhance the capabilities of smart lighting systems. Through the integration of AI within local networks, smart lighting solutions can provide safe, sustainable, and efficient lighting while ensuring user privacy.
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FAQ for the Global Smart Lighting Market
1. What is the expected size of the global smart lighting market by 2030?
The global smart lighting market is projected to reach USD 72.35 billion by 2030, growing at a CAGR of 22.1% from 2023 to 2030.
2. What are the primary factors driving growth in the smart lighting market?
Key growth drivers include:
• The development of smart cities and the increasing adoption of smart homes.
• The deployment of intelligent street lighting systems.
• The rising demand for energy-efficient lighting solutions.
3. What technologies are integrated with smart lighting systems?
Smart lighting systems are often integrated with:
• Internet of Things (IoT) technology for seamless device control.
• Voice-activated personal assistants such as Alexa, Crotona, and Siri.
• Communication technologies like Bluetooth Low Energy (BLE) and Visible Light Communication (VLC).
4. Which sectors benefit the most from smart lighting?
The residential sector, especially middle- and high-income households adopting home automation, and the retail commercial sector, where smart lighting helps enhance customer engagement through wireless communication with smartphones.
5. What are some advantages of smart lighting compared to traditional lighting?
Advantages include:
• Better energy efficiency.
• Enhanced control over lighting functions such as hue, brightness, and timing.
• Increased convenience through voice command integration.
• Opportunities for retailers to interact with customers inside stores.
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